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Introduction Concerning the competitive environment dominating on various sectors of business surrounding, requirement of strategy formulation has been

increasingly apparent. Yet the main problem of managers and business owners is implementation of strategies. The studies and researches show that most big companies have had problems in implementing their strategies and in some occasions were failed in that.

Strategy is a pattern or a plan which integrates goals, policies and operation activities chain of an organization as a whole. If it has been formulated accurately, and considered unified allocation and direction of resources, on the basis of capabilities and even relative inner shortcomings of organization and also environmental foreseen evolutions and intellectual contingency movements of competitors , it would be more effective (James Brian Queen ).

Miles and Snow (1978) define strategic choice decision as to choosing one action among several actions selected by the firm to respond to the changes in the environment in order to benefit from opportunities or to avoid unhealthy effects from threats with the main intention of achieving the strategic fit between the organization and its environment in order to accomplish the firm s objectives by using its strengths to overcome its weakness.

Formulating a strategic decision into which a strategic choice results involves the whole organization structure under stages that the process has to undergo such as i) The input stage which involves analysis of the environmental under selected analysis methods such as the SWOT Analysis, PEST Analysis, Market Analysis (Michael Porters five forces of competitive strategies)

This stage provides basic input information for the matching and decision stage matrices, requires strategists to quantify subjectivity early in the process and good intuitive judgment always needed at this stage


The matching stage which involves an analysis of the available resources such as financial resource, human resource, expertise, core competencies and value chain analysis (Michael Porters)

At this stage, there is matching between organizations internal resources and skills and the opportunities and risks created by its external factors.


The decision stage is where Portfolio is analyzed such as BCG matrix, PLC, GE screening (9 CELL Model) and SHELL Directional Matrix). Framework is formulated at this stage.

Finally the gland Strategic choice decision is made which should be suitable, Feasible, Acceptable and Sustainable.

A serious constraint facing many developing countries, especially developing countries is fiscal constraint. Funding limitations affect the ability of countries to scale up public expenditures required for investing in strategic planning. Thus various issues have been raised that affect strategic choice decision as discussed, mainly political, economic and social situations have been identified as external factors that affect these choices, however internally democracy in the organization structure which includes human resources, information system and the type of technology employed have also been identified as factors affecting strategic choice decision.

A summary of factors is depicted as below;

Source: Harrison, E. Frank (1999)

Recent global developments such as the economic and financial crisis and the soaring prices of food and oil also threaten to erode previous gains, reminding us in stark terms that in an increasingly interdependent world no country is immune from external shocks and that sustaining strategic choice decision will require

developing countries to adopt risk-coping and risk-management strategies to prevent setbacks or at least mitigate any negative effects. For example in Tanzania, fuel prices have raised and raising in the general cost of living.

Additionally, the current economic crisis and volatility of global markets have exacerbated existing development challenges and exposed the underlying vulnerabilities of many developing countries such as Uganda which used to export large quantities of agricultural and food product to European but has recently fallen due to economic crisis. These vulnerabilities, together with a countrys own domestic conditions, are more fundamental to determining decision outcomes than only external shocks. How a country articulates its development priorities, how it reflects these priorities in policies and programmes, and how it leverages its opportunities in the global system are fundamental in charting and shaping strategic choice decision progress at the national level.

The design of sector policies and the selection of appropriate programmes are also critical for shaping strategic decision progress. For instance, despite food security being a key development objective of many countries such as Rwanda which has established resettlement schemes so as to create more land for agriculture whereas agricultural sector has been ignored for decades and, not surprisingly, hunger prevalence remains a challenge in this country and many other countries and across regions. Policy choices and programme coherence that govern how a country participates in the global economy and whether domestic policies contribute to broad-based, inclusive growth both at the macroeconomic and sector level;

Governance and capacity deficits that undermine the creation of an enabling environment needed for securing progress such as fiscal constraints, both domestic and local, and development assistance practices that limit the capacity to scale up public investments necessary for strategic choice outcomes.

Countries such as Tanzania still invites foreign investors invest in developmental projects under signed contracts. This limits implementation of decisions made since it takes time to acquire appropriate investors.

More so governance deficits have been linked to poor service delivery due to a lack of coordination and design flaws; a lack of flexibility in the implementation and design of programmes; an inconsistent approach to the design of delivery mechanisms; and weak monitoring and insufficient outcome evaluations, which, if done correctly, can contribute to more effective service delivery. Governance is thus the link that translates the Goals into development outcomes. Supporting and strengthening democratic governance practices and building accountable and responsive institutions will be a key for sustaining strategic choice decision achievements.

Role of democratic governance for the achievement of strategic choice decision outcomes. By emphasizing the means by which development goals are translated into outcomes, democratic governance addresses the how the processes, institutions and systems that will yield collectively acceptable results. The values and principles of democratic governance allow people, in particular the poor and marginalized, to have a say in how they are governed, in how decisions are made and implemented, in how diverging opinions are meditated and conflicting interests reconciled in accordance with the rule of law. As such, democratic governance is seen as essential for creating an enabling environment for strategic choice decision progress and for imbuing national and local institutions with systems, processes and values that respect peoples human rights and fundamental freedoms; an environment where the poor can hold their leaders to account and are protected from arbitrary action in their lives by government, private institutions and other forces; and where governing institutions are responsive and accountable. Thus in realization of this factor, Tanzania being one of the developing countries has called for constitutional review so as to standardize these facts.

Absence of rule of law, legal empowerment frameworks for the poor, political stability and accountability as well as pervasive corruption undermine both national institutions and national implementation capacities. In post-conflict and transition countries, these deficits are more acute. Most developing countries are affected by corrupt governments which are stumbling blocks towards made decision, talk of East African countries such as Tanzania which despite forming anti-corruption bodies but still is influenced by high corruption rate.

All these factors are essential for shaping strategic choice decision outcomes. Policies without effective institutions to implement them are meaningless. Policies and institutions without resources are ineffective. Even as these factors are critical for shaping decision outcomes in individual countries, they are by themselves.

The relation between planning and implementing of strategies are a considerable and important matter. Interaction of these three stages is basically definitive factor in all government bodies. In planning stage, it is required to take into consideration the sextet factors and country's capacities and potentials for each kind of strategies, and so if the goals have been chosen in accordance with internal and external capacities and conditions of government. As a whole the secrets of success in third millennium are revolutionizing attitudes and viewpoints and foreseeing future prospects, comprehensive planning appropriate to condition, commitment for implementing programs accurately considering goals and elements of governing and controlling processes by efficient tools properly.

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